ProntoBev – Wine & Beverage Cooler
DEAL
EPISODE SUMMARY
🕓 Air Date: November 12, 2017
Asking For:
$100,000 for 5%
Investor:
Mark Cuban
Deal:
$100,000 for 25%
PRODUCT SUMMARY
ProntoBev is the world's fastest wine chiller, using a wine-grade stainless-steel interior and a built-in thermometer to chill a bottle up to 20 degrees in just 30 seconds.
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Background Story
Alexander Simone, an inventor from San Francisco, came up with the idea for ProntoBev when facing the common problem of wanting to enjoy chilled wine instantly. His invention was born out of a college experience where he attempted to cool a bottle of wine quickly but ended up diluting it with ice.
Realizing the need for a fast wine-chilling solution, Simone developed ProntoBev, which uses a wine-grade stainless-steel interior and a proprietary gel to achieve rapid temperature reduction. With a background in entrepreneurship and previous experience working for startups, Simone launched Pronto Concepts to address the challenges faced by wine lovers worldwide.
The Product
ProntoBev is a revolutionary wine chiller designed for the spontaneous enjoyment of perfectly chilled wine. The stainless-steel interior jump-starts a rapid heat-transfer process, chilling a bottle up to 20 degrees in just 30 seconds.
This rapid chilling is achieved without diluting the wine, preserving its flavor profile. The built-in thermometer ensures that each wine variety reaches its optimal temperature, enhancing the overall tasting experience.
The ProntoBev prototype uses a trade-secret gel behind the stainless steel, protected by a provisional patent. While not yet in production during the Shark Tank pitch, Simone showcased the product’s effectiveness using the prototype.
The product is positioned as a convenient alternative to traditional wine refrigerators, allowing users to choose from their wine collection and enjoy it immediately without the need for extensive preparation. ProntoBev aims to address a common issue faced by wine lovers who desire both spontaneity and the perfect wine temperature.
ProntoBev was presented on the crowdfunding platform Indiegogo, where it successfully raised $54,000, surpassing its initial goal. The crowdfunding price was $89, with the anticipated retail price at $129. The cost to produce ProntoBev is $22. Simone emphasized the product’s advantages over competitors, particularly its quick chilling time and absence of drawbacks found in other wine chillers.
How It Went
The company’s position before Shark Tank
Pronto Concepts recently concluded a successful Indiegogo crowdfunding campaign, raising $54,000, exceeding its initial target of $25,000. The crowdfunding period lasted two months, and ProntoBev was priced at $89 during this campaign, with plans to retail it at $129. The cost of production is $22 per unit. Alexander Simone, the founder, has an entrepreneurial background and studied entrepreneurship at Arizona State University.
During the pitch, Simone revealed that ProntoBev’s major competitor generates $10 to $20 million in annual revenue but has drawbacks that ProntoBev aims to overcome. Simone highlighted the product’s unique selling points, such as rapid chilling and a proprietary gel that avoids dilution.
The company’s structure and partnerships were not extensively discussed during the pitch. However, Simone mentioned having interested parties willing to contribute an additional $100,000 to the company. Pronto Concepts has successfully positioned itself as a contender in the wine-chilling market, with a focus on innovation and addressing the shortcomings of existing products.
The Negotiations:
Alexander Simone initially sought a $100,000 investment for a 5% equity stake in Pronto Concepts. Kevin O’Leary, impressed with the product, offered $100,000 but requested a 50% equity stake. Lori Greiner expressed concerns about the $2 million valuation and eventually dropped out of the negotiation, followed by other sharks.
After receiving rejection from other sharks, Simone hesitated to accept O’Leary’s offer, concerned about giving up 50% of his company. He argued that he needed flexibility for future fundraising and strategic decisions. O’Leary insisted on the 50% equity stake, emphasizing the value he brought to the table.
In a surprising turn, Mark Cuban returned with an alternative offer. He proposed investing $100,000 for 25%, contingent on Simone raising the additional $100,000 needed for the business. Simone promptly accepted Cuban’s offer, expressing gratitude for making a deal with Mark Cuban and ensuring a positive outcome for Pronto Concepts. The negotiation process highlights the challenges of valuing a startup and the importance of finding the right investor to support the company’s growth.
